2080 dft vol i spitt 65-87 - fairtrading.nsw.gov.au · dft annual report 1997~1998 65 prosecution...
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DFT Annual Report 1997~1998
65
Prosecution results 66
Legislation 66
Motor Dealers Compensation Fund 67
DFT insurance activities 67
Portfolio authorities 67
Consultants 68
Overseas travel 68
Freedom of Information 69
Customer feedback 70
Grants 70
Report of Registrar of Funeral Funds 74
Publications 74
Statutory bodies and interdepartmental Committees 75
Internal Audit 77
Performance of CEO 78
Statutory Annual Report – Cooperation Act 1923, Section 123 78
Reviews of commission by delegates of the Director-General 79
Ethnic Affairs Priorities Statement 1997~1998 Report 79
Ethnic Affairs Priorities Statement July 1998 – June 1999 82
Accounts payable performance 85
Disability plan 85
Property Services Compensation Fund 85
Appendices
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1 PROSECUTIONS 1997~1998
Act No. of Defendants No. of Offences Penalty ($)
Property Stock and Business Agents 52 52 17,391Business Names 1 1 4,338Fair Trading 28 39 24,154Home Building 38 49 70,605Motor Dealers 33 102 205,431Trade Measurement 22 127 46,554
Total Penalty 351,082
Penalty Notices 1997~1998 Motor Dealers 27 135 7,270Trade Measurement 28 39 18,150Business Names 1 1 200
Total Penalty 25,620
• Associations Incorporation Act 1984 No. 143.• Business Licences Act 1990 No. 72.• Business Names Act 1962 No. 11.• Commercial Tribunal Act 1984 No. 98.• Community Land Management Act 1989 No. 202.• Consumer Claims Tribunals Act 1987 No. 206.• Consumer Credit Administration Act 1995. No. 69.• Consumer Credit (New South Wales) Act 1995 No. 7.• Contracts Review Act 1980 No. 16.• Conveyancers Licensing Act 1995 No. 57.• Co-operation Act 1923 (1924 No. 1), the provision of the
Act (section 17AB(3)(c) excepted) so far as they relate toa Starr-Bowkett Society (remainder,Treasurer andMinister for Housing).
• Co-operation (Leeton Fruit Growers’Agreements) Act1951 No. 36.
• Co-operatives Act 1992 No. 18.• Credit Act 1984 No. 94.• Credit (Finance Brokers) Act 1984 No. 96.• Credit (Home Finance Contracts) Act 1984 No. 97.• Credit (Rural Contracts) Act 1987 No. 205.• Door-to-Door Sales Act 1967 No. 36.• Electricity Safety Act 1945 (1946 No 13) so far as it
relates to electrical articles and electrical installations(remainder, Minister for Energy)
• Employment Agents Act 1996 No. 18.• Fair Trading Act 1987 No. 68.• Fair Trading Legislation Amendment Act 1997• Funeral Funds Act 1979 No. 106.
• Hire-Purchase (Repeal) Act 1981 No. 127.• Home Building Act 1989 No. 147.• HomeFund Commissioner Act 1993 No. 9.• HomeFund Restructuring Act 1993 No. 112, sections 14,
15, 16 and Schedule 2 (remainder Minister for Housing).• Landlord and Tenant Act 1899 No. 18.• Landlord and Tenant (Amendment) Act 1948 No. 25.• Landlord and Tenant Amendment (Distress Abolition)
Act 1930 No. 49.• Landlord and Tenant (Rental Bonds) Act 1977 No. 44.• Letona Co-operative (Financial Assistance)
Act 1993 No. 85• Mock Auctions Act 1973 No. 17.• Motor Dealers Act 1974 No. 52.• Motor Vehicle Repairs Act 1980 No. 71.• Pawnbrokers & Secondhand Dealers’Act 1996 No. 13.• Prices Regulation Act 1948 No. 26.• Property, Stock and Business Agents Act 1941 No. 28.• Property Services Council Act 1990 No. 14
(repealed 1 August 1997).• Registration of Interests in Goods Act 1986 No. 37.• Residential Tenancies Act 1987 No. 26.• Retirement Villages Act 1989 No. 74.• Strata Schemes Management Act 1996 No. 138, 139.• Trade Measurement Act 1989 No. 233.• Trade Measurement Administration Act 1989 No. 234.• Travel Agents Act 1986 No. 5.• Valuers Registration Act 1975 No. 92.• Warehousemen’s Liens Act 1935 No. 19.
2 LEGISLATION
Appendices
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Commercial TribunalLevel 8 175 Castlereagh StreetSydney NSW 2000Ph 02 9895 0928
Consumer Claims/BuildingDisputes TribunalsLevel 7 175 Castlereagh StreetSydney NSW 2000Ph 02 9895 2070
Residential TenanciesTribunalLevel 8 26 O’Connell StreetSydney NSW 2000Ph 02 9229 0022
Co-operatives CouncilLevel 8 Bankstown Civic Tower66 – 72 Rickard RoadBankstown NSW 2200Ph 02 9793 0793
Registry of Co-operativesLevel 8 Bankstown Civic Tower66 – 72 Rickard RoadBankstown NSW 2200Ph 02 9793 0557
Rental Bond BoardLevel 4 26 O’ConnellSydney NSW 2000Ph 02 9377 9000
3 MOTOR DEALERS COMPENSATION FUND
The Motor Dealers Act establishes a Motor Dealers Compensation Fund to provide protection to persons who havesuffered a loss in connection with a motor vehicle through their dealings with a motor dealer or a car-market operator.The Fund is financed by licensing fees paid by full dealers and car-market operators. Claims are usually made on the Fundwhen a motor dealer ceases to trade either on a voluntary basis or a forced closure.
During the year the Fund received 32 claims, of which 27 claims against 16 dealers were paid. The Fund paid out$236,021.36 for consumer losses due to dealers failing to meet warranty obligations; failing to pass an unencumbered title;and failing to account for monies to customers when a vehicle is consigned to a dealer to be sold on the customers behalf.
$’000Balance as at 1 July 1997 1,702Receipts 460Expenditure (236)
Balance as at 30 June 1998 1,926
4 DFT BUILDING INSURANCE ACTIVITIES 1 JULY 1997 – 30 JUNE 1998
Item Comprehensive Insurance Special Insurance TotalSchemes & House Purchasers Agreement Schemes
Number of Claims Received 778 279 1057Number of Claims Reopened 164 18 182Number of Claims Approved 1006 291 1297Value of Claims Approved $17,374,366 $1,331,532 $18,705,898Value of Claims Paid $15,269,516 $1,209,469 $16,478,985Number of Claims Declined 292 179 471Number of Claims Settled 779 285 1064UFI Pools – Completed 112 - 12UFI Pools – Claims Paid 1.4 m - 1.4 m
5 PORTFOLIO AUTHORITIES
Statutory BodiesThe following statutory bodies are located at:Department of Fair TradingLevel 20 227 Elizabeth StreetSydney NSW 2000• Home Building Advisory Council• Property Services Advisory Council• Fair Trading Advisory Council• Motor Trade Advisory Council.
The following statutory bodies are located at:Department of Fair TradingEnterprise House1 Fitzwilliam StreetParramatta NSW 2150• Registrar of Funeral Funds• NSW Products Safety Committee• Motor Dealer Disputes Committee.
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Appendices
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6 CONSULTANTS
Consultancy Engagements Over $30,000:
Australian Strategic Planning Review of Valuers Regulation $11,750.00Cultural Perspectives Awareness and education strategy $35,592.00Deloitte Touche Tohmatsu Business risk evaluation of rental bond financial operations $50,000.00ETC Electronic Trading Concepts Internet Refund Services project $46,000.00Keys Young P/L Project on Fair Trading issues in the tenancy market $100,000.00Kit Consulting P/L Private Employment Agents Licence module development,
functional and technical specifications $55,000.00Parity People P/L Feasibility study on CAS and CMS systems $82,087.50Robyn Kennedy & Co National competition policy review of
NSW residential tenancy laws $65,250.00 Report on 2000 Olympicsand the residential tenancies market $48,500.00
Tillinghast-Towers Perrin Cost benefit analysis of options for management of the Building Services insurance tail $30,975.00
Total: $525,154.50
The Department also engaged 13 consultants for values under $30,000 at a total cost of $121,030.50.
7 OVERSEAS TRAVEL
Officer Dates of Travel Destination Purpose of trip $
Geoff Potts 02 10 97 - 04 10 97 Bologna, ITALY Attendance at InternationalCo-Ops Alliance Meeting 347.43
David Catt 13 10 97 - 16 10 97 Wellington, NZ Attendance at FTOAC & CPAC Meetings 1,165.80Alistair Walton 15 10 97 - 18 10 97 Wellington, NZ Attendance at Consumer Education
Advisory Committee Meeting 2,072.71John Schmidt 27 11 97 - 30 11 97 Christchurch, NZ Attendance at SCOCA Meeting 1,780.53David O’Connor 27 11 97 - 30 11 97 Christchurch, NZ Attendance at SCOCA Meeting 1,839.77David Catt 23 03 98 - 26 03 98 Wellington, NZ Attendance at FTOAC & CPAC Meetings 1,088.72Colleen Moore 25 03 98 - 27 03 98 Wellington, NZ Attendance at Consumer Education
Advisory Committee meeting 1,082.11Victor Lawrence 25 03 98 - 01 04 98 Wellington, NZ Attendance at Trade Measurement
Advisory Committee meeting 1,235.88
John Schmidt 30 04 98 - 03 05 98 Auckland, NZ Attendance at SCOCA Conference 1,837.05
Total cost to the Department 12,450.00
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8 FREEDOM OF INFORMATION
During the year, following a external review of FOI operations in the Department, a FOI Officers’ Network wasestablished and training provided to all members on the application of the FOI Act.Administrative procedures wererationalised and the Department commenced separately recording personal and non personal information requests toenhance compliance with the Act.
The total number of applications dropped slightly this year, following greater efforts to release non sensitive informationoutside the FOI Act. Improved communication with applicants has lead to a significant reduction of third partyconsultations undertaken.The volume of documents requested however, particularly in the Home Building area, hasdramatically increased reducing the Department’s ability to respond within time limits. In instances where the time limitis likely to be exceeded, the applicant is kept regularly informed on the progress of their FOI request.
Data between 01 07 97 – 30 06 98 inclusive.
96~97 97~98FOI requests: Total Personal Other Total
New/ received 231 28 188 216Brought forward 11 0 21 21TOTAL 242 28 209 237Finalised:Completed 215 25 191 216Transferred 0 1 2 3Withdrawn 6 0 8 8TOTAL 221 26 201 227Unfinished 21 2 8 10
FOI requests: Total Personal Other
Granted in full 182 22 131Granted in part 26 2 42Refused 7 1 18Deferred 0 0 0Completed 215 25 191
Total 216
Basis of disallowing access:
96~97 97~98Section Personal Other
19 application incomplete,wrongly directed 0 0 322 deposit not paid 0 0 225(1) (a1) diversion of resources 0 0 025(1) (a) exempt 33 1 4625 (1)(b), (c), (d) otherwise available 4 0 228(1) (b) documents not held 5 2 724(2) deemed refused 0 0 031(4) released to Medical Practitioner 0 0 0Sub-total 3 60TOTAL 42 TOTAL 63
Days to process:96~97 97~98
Elapsed time Personal Other
0-21 days 96 8 5622-35 days 1 35Over 35 days 119 15 90Sub-total 24 192TOTAL 215 TOTAL 216
Processing time:
96~97 97~98Hours Personal Other
0-10 181 13 19311-20 34 2 521-40 0 0 2Over 40 0 0 1Sub-total 15 201TOTAL 215 TOTAL 216
Discounts allowed:
96~97 97~98Type of discount Person Other
Public interest 0 0Financial hardship – pensioner/child 8 2 5Financial hardship – non profit group 0 1Sub-total 2 6TOTAL 8 TOTAL 8
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Costs and Fees:
96~97 97~98Costs/Fees $ $
Assessed cost 28,590 30,778Fees received 6,330 6,500
Additional information:
1996~97 1997~98
Ministerial Certificates issued 0 0Formal consultation 111 47Amendment of Personal records 0 2
( notations made: 2)Internal Reviews finalised 3 2Ombudsman Reviews finalised 2 0District Court Appeals 0 0Basis of Internal Review - 2
-accessed refused:Personal – upheld 1
Other – varied 1
9 CUSTOMER FEEDBACK
The Department continued to operate a customerfeedback system known as “Your Opinion Counts” aspart of its Guarantee of Service program. This systemallows customers to comment on all services offered bythe Department.
During 1998~1999 this system will be upgraded toassist management in the effective delivery of services toall our customers.
17 complaints were received through customer feedbackduring 1997~1998. Three were made to the Ministerand resolved by ministerial correspondence while 14were resolved by conciliation with program managerswhere possible. No allegations of suspected corruptconduct or illegal behaviour were received through thecustomer feedback system.
Feedback Received
93~94 94~95 95~96 96~97 97~98
Total 725 537 442 358 250Compliment 80% 74% 92% 92% 93%Complaint 10% 12% 8% 8% 7%
10 GRANTS
Credit Counselling Program
Service Location Funding $
Campbelltown Legal Centre Campbelltown 21,850CARE, Queanbeyan Financial Counselling Service Queanbeyan 15,500Central Coast Financial Counselling Service The Entrance 39,350Christian Community Aid Service Inc, Ryde-Eastwood Eastwood 27,150Consumer Credit Legal Centre Surry Hills 116,000Credit Line – Central West Bathurst 23,000Credit Line – Newcastle Hamilton 21,900Credit Line Financial Counselling Service Fairfield Fairfield 27,300Credit Line Financial Counselling Service Penrith Penrith 41,750Credit Line Financial Counselling Service Sydney Haymarket 292,250Eurobodalla Family Support Service Moruya 15,500Forest Neighbourhood Centre Forster 15,500Illawarra Legal Centre Warrawong 33,850Kempsey Financial Counselling Service Kempsey 15,500Lifeline South Coast (NSW) Nowra 15,500Lismore & District Financial Counselling Lismore 24,200Macarthur Credit Line Narellan 15,500Murwillumbah Community Support Financial Counselling Service Murwillumbah 15,500
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Port Macquarie Neighbourhood Centre Port Macquarie 15,500Redfern Legal Centre Redfern 16,400Wagga Wagga Family support Service South Wagga 15,500Westlake Macquarie Financial Counselling Service Woodrising 15,500
TOTAL 840,000
Financial Counselling Trust Fund
Service Location Funding $
Auburn Neighbourhood Centre Auburn 27,000Bankstown Family Support Service Bankstown 17,160CARE, Queanbeyan Financial Counselling Service Queanbeyan 15,469Careforce Inc – Eden Eden 8,000Central Coast Financial Counselling Service – The Entrance The Entrance 24,000Christian community Aid Service Inc, Ryde-Eastwood (West Ryde) West Ryde 8,000Christian Community Aid Service Inc, Ryde-Eastwood (Granville) Granville 13,6000Christian Community Aid Service Inc, Ryde-Eastwood (Training) West Ryde 5,630Christian Community Aid Service Inc, Ryde-Eastwood (Westmead) Westmead 10,000Coffs Harbour Neighbourhood Centre Coffs Harbour 8,000Credit Line – Central West (Bathurst) Bathurst 16,000Credit Line Financial Counselling Service Fairfield Fairfield 24,000Credit Line Financial Counselling Service Penrith * Outreach Hawkesbury only Hawkesbury 16,000Eastlakes Family Support Service Inc – East Lake Macquarie East Lake Macquarie 16,000Eurobadalla Family Support Service Moruya 15,000Forster Neighbourhood Centre Foster 10,000Gosford City Community & Information Service Ltd Gosford 16,000Hunter Region N/C Forum Hunter 33,000Illawarra Legal Centre Illawarra 16,000Kempsey Financial Counselling Service Kempsey 15,000Lifeline Newcastle & Hunter Newcastle & Hunter 12,000Lifeline South Coast (NSW) – Nowra South Coast 15,585Lismore & District Financial Counselling Lismore 16,000Lismore & District Financial Counselling-Murwillumbah/Bryon Bay Murwillumbah/Bryon Bay 17,000Murwillumbah Community Support Financial Counselling Service Murwillumbah 8,000Port Macquarie Neighbourhood Centre Port Macquarie 16,000Salvation Army – Moneycare Campsie Campsie 16,000Salvation Army – Moneycare Parramatta Parramatta 24,000San Remo Neighbourhood Centre Inc San Remo 16,000St Davids Care – Albury Albury 24,000St Vincent de Paul – Broken Bay Broken Bay 8,000Sydney City Mission – Green Valley Green Valley 24,000Sydney City Mission – Macarthur Macarthur 24,000Wagga Wagga Family Support Service Wagga Wagga 20,000Westlake Macquarie Financial Counselling Service Woodrising 24,000Wollongong City Mission Wollongong 24,990.20Women’s Activities & Self Help House – Mt Druitt Mt Druitt 8,768.80
TOTAL 612,203.00
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Property Services Grants Program – 1997 ~ 1998
Service Funding $
Building Careers Centre Inc 12,500Stock & Station Agents Association of NSW 198,750Institute of Strata Management 5,250Australian Institute of Valuers & Land Economists Inc 85,300Real Estate Institute of NSW 123,233
Total 425,033
Education & Research Fund (Home Building Act) 1997 ~ 1998
Service Funding $
Building Apprentice Trainee Scheme 250,000Unisearch House 987
Total 250,987
Tenants Advice & Advocacy Program (TAAP) funding 1997 ~ 1998
Service Funding $
Bundjalung Training & Development Aboriginal Corporation 144,500Canterbury-Bankstown Migrant Resource Centre Inc 206,250Combined Pensioners and Superannuants Association of NSW Inc 117,000Construction & Management Services Aboriginal Corporation 144,500Eastern Area Tenants Service Incorporated 151,250Hunter Community Legal Centre Inc 215,625Illawarra Legal Centre Inc 153,750ITRAC Wyong Shire Inc 126,250Lismore Neighbourhood Centre Inc 214,500Marrickville Legal Centre Ltd 178,750Northern Area Tenants Service Inc 151,250Redfern Legal Centre Ltd 151,250South Sydney Aboriginal Corporation Resource Centre 111,500South West Sydney Legal Centre Inc 151,250Tenants Union of NSW Co-Op Ltd 304,000The Uniting Church in Australia Property Trust (NSW) 222,500Thubbo Aboriginal Medical Co-Op 144,500Program Administration 55,000Central West Community College 172,000Orange Community Resource Organisation 99,950Special Purpose Fund 110,000
Total 3,325,575.00
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Appendices
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Co-operative Development Fund
Recipient Purpose Funding $
Abrasiflex Workers’ Co-operative To prepare a valuation report on the Co-operative 1,600.00(approved on 24 07 97)
Yeoval Hospital Co-operative To conduct a Seminar “Co-operatives in Health as 7,666.00(approved on 08 08 97) Alternative Multi Purpose Health Centres”
Co-operative Federation of NSW Sponsorship of the Co-operatives Federation 7,000.00(approved on 14 08 97) Conference 1997
Crossroads Medieval Village To undertake a Feasibility Study into expansion of the 16,882.50 Cooperative Limited Co-operative’s medieval village(approved on 22 08 97)
Frank Small & Associates To conduct a Feasibility Study into the introduction 10,000.00(approved on 01 09 97) of an International Cooperative Trade Network
Greater Gloucester Rabbit To prepare a Business Plan for processing and 7,500.00 Cooperative Ltd marketing of rabbits by the Co-operative(approved on 02 12 97)
Co-operative Enterprises To update the publications 1,600.00 Development Centre ‘Guides for Business Advisers and Jobseekers’(approved on 23 12 97)
Reverse Garbage Co-operative To prepare a Strategic Plan for the co-operative 3,000.00(approved on 21 03 98)
Buffalo Producers NSW Inc To conduct a Feasibility Study for the formation of a 17,150.00(approved on 02 04 98) buffalo marketing cooperative
Yeoval Community Hospital Cooperative To conduct a Feasibility study for establishment of a 3,100.00(approved on 29 05 98) dementia specific unit at the Cooperative Hospital
TAFE NSW – Business & Public To develop the curriculum for a course in 4,200.00Administration Educational Services ‘Co-operatives Set-up and Management’Consortium (approved on 04 06 98)
Labour Co-operative Limited To develop a strategic plan to assist workforce 43,560.00 (approved on 17 06 98) affected by BHP plant closure at Newcastle
Total 123,258
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11 REPORT OF REGISTRAR OF FUNERAL FUNDS
The Funeral Funds Act, 1979 provides for the registration or exemption of pre-arranged and contributory funeral fundsoperating in NSW to safeguard consumers prepayments for funeral services.The Registrar of Funeral Funds is responsiblefor monitoring the continuing operation of existing funds for the benefit of existing members to facilitate the registrationof new funds which meet the requirements of the legislation to safeguard pre-payments.
The Director-General of the Department of Fair Trading is the Registrar of Funeral Funds.The appointment is by virtueof the Public Sector Management Administrative Changes (Fair Trading) Order 1995 published in New South WalesGazette No. 128.
The Registrar’s functions include ensuring State-wide compliance with the Act is achieved by:• monitoring funeral fund complaint data;• developing and implementing programs for the inspection of funeral fund records;• examining annual statements submitted in accordance with the Act;• evaluating the continued relevance of funeral fund registration criteria, including the standards by which the merits of
applications for registration are assessed.
Fifteen pre-arranged funeral funds are currently registered under the Act and two other organisations have been exemptedfrom registration under the Act to operate as contributory funeral benefit businesses.
Contributory funeral funds which existed prior to the Act’s introduction in 1979 were granted exemption fromregistration under the legislation on the basis that no new members could be recruited.These funds continue to operatesatisfactorily.A number of claims totalling $2145 were received during 1997~1998 relating to contributory funeral fundswhich were operated by the Russell Kinsela group, to which an official liquidator was appointed in 1981.A number ofcontributors to these schemes remain unidentified. Some funds retrieved from one company in that group are retained intrust by this Department for refund to these contributors as they are identified.The balance of funds held in the RussellKinsela Funeral Fund account as at 30 June 1998 was $114,561.
The Department dealt with 42 formal complaints regarding matters associated with the Funeral Industry during the 1997 ~1998 year.This figure represents an increase of 13.5% over the level of complaints for the 1996~1997 period.Funeral service providers attracted the bulk of the complaints with 26 matters being dealt with by the Department.Thedynamic nature of the industry and continued use of a marketing approach influenced by overseas trends may haveimpacted on the level of complaints received.
David O’ConnorRegistrar of Funeral Funds
12 PUBLICATIONS
Publications available during 1997~1998 included the following titles:• Thinking business? – think co-operatives• Retirement village living• Business checklist – credit code• Caravan park living• Car buyers’ checklist• Taking charge – action kit for communities facing
bank closure
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• Builders & tradespeople• Consumers’ guide to home building ...• Becoming an owner builder• New credit code – business• Home maintenance & security handbook• BLIS ending the paper chase
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• Stolen goods are now too hot to handle• Minor works building contract – pad 10• Minor works building contract – pad 50• Renovations contract – pad 10• Renovations contract – pad 50• Home building contract – 2 Pack• Swimming pool contract – 2 Pack• Strata synopsis• Strata living• A guide to solving a disputes in a strata scheme• Conveyancing in NSW• How to apply for a conveyancer’s licence• The Renting Guide – English,Arabic, Chinese,
Croatian, Farsi, Greek, Italian, Japanese, Khmer, Korean,Macedonian, Polish, Portuguese, Russian, Serbian,Spanish,Turkish,Vietnamese
• Associations – A guide to incorporating• Electrical safety guide• Shopping from home• Shopping in the electronic age• A consumer’s guide to shopping• Building a pool• Protect your home from termites• Our Services – English, Bosnian, Chinese,Thai,Turkish,
Vietnamese• Photostory (buying a car) – Arabic• Photostory (buying computer)- Chinese• Photostory (going guarantor) – Spanish• Photostory (refunds) – Vietnamese• Safer buying for your kids• Selling knives to minors is now a criminal offence• Associations Model Rules – English,Vietnamese,
Korean, Chinese, Greek, Italian, Spanish, Bosnian,Croatian, Serbian, Macedonian,Turkish,Arabic
Posters• The Renting Guide• Plain English Building Contracts• Strata Law changes• Borrowing Money? – English• Borrowing Money? – Arabic• Borrowing Money? – Chinese• Borrowing Money? – Turkish• Borrowing Money? – Vietnamese• When dealing in second-hand goods
Videos• Consumer Power• Good Business Matters Training Kit• Home Delivery – Mediation
Flyers and fact sheets• Senior Citizens’Alert• Toy Safety Checklist• Household Cots• Door to door selling guidelines• Don’t get caught selling non-shrouded cord extension
sockets• REVS online system• NSW electrical accidents report• Motor dealers advertising guidelines• Disposable cigarette lighters
Newsletters• Target (home building issues)• Keynotes (real estate & tenancy)• Retirement Village Green (for residents and
management)• Co-operation (co-operatives)
13 STATUTORY BODIES AND
INTERDEPARTMENTAL COMMITTEES
Representation Key:[c] – Chairperson;[m] – member;[o] – observer;[s] – secretary;[t] – trustee.
Acceptable Standards of Construction Committee NSWBarry Miller [m]
Archives Authority Customer CouncilDavid Lilley [m]
Australian Standard: Guide for the prevention, handlingand resolution of disputes.Angela Pickworth [m]
Australian – New Zealand Reciprocity AssociationPeter Smith [m]
BIS (NSW) Core Reference GroupMarie Bonney [m]Cameron Smith [m]
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Builders Licensing AustraliaSusan Cleary [m]
Caravan Park & Manufactured Home Estates ConsultativeCommitteePeter Berry [c]Barbara Fernandez [s]
Committee for Review of Motor Accidents LegislationKathrina Lo [m]
Construction Industry Training Advisory BoardPeter Smith [m]
Consumer Education Advisory CommitteePeter Elias [m]
Consumer Products Advisory CommitteeDavid Catt [m]
Council of the Standards Association of AustraliaDavid Catt [m]
Credit Officers Compliance ForumMalcolm Finger [m]Rod Stowe [m]
Electrical Equipment Safety Advisory CommitteeAlex Krestovsky [c]
Electrical Regulatory Authorities CouncilPeter Smith [m]
Fair Trading Advisory CouncilDavid O’Connor [m]Robert McMahon [s]
Fair Trading Operations Advisory CommitteeDavid Catt [m]Malcolm Finger [m]
Fitness Code TaskforceKathrina Lo [m]
Government & Related Employees Appeal Tribunal(GREAT)Ann Keating [m]
Hazardous Chemicals Advisory CommitteeStephen Hutchison [m]
Home Building Advisory CouncilDavid O’Connor [m]Robert McMahon [s]
Inter-Agency Fraud CommitteeGreg Jemmeson [m]
Jewellery and Timepiece Industry Code AdministrationCommitteeMalcolm Finger [m]
Lead Inter-Agency GroupStephen Hutchison [m]
Ministerial Taskforce on Affordable HousingDavid O’Connor [m]
Motor Dealers Disputes CommitteeAndrew Gavrielatos [c]
Motor Trade Advisory CouncilDavid O’Connor [m]Robert McMahon [s]
NSW Financial Counselling Trust FundBrian Given [t]Kris Bennell [s]
NSW Food Advisory CommitteeMerilyn Betty [m]
NSW Injury Prevention ForumAlex Krestovsky [m]
NSW Treasury Managed Fund Advisory BoardGarry Waters [m]
Olympic Co-ordination Authority Social ImpactsAdvisory CommitteeRod Stowe [m]
Olympic Co-ordination Authority Social ImpactsAdvisory Committee – HousingSub-committeeRod Stowe [m]
Pawnbrokers & Secondhand Dealers Computer SystemSteering CommitteeTracy Taylor [m]
Police Commissioner’s Motor Vehicle Theft SteeringCommitteeKathrina Lo [m]
Pest Control Licensing Committee(WorkCover)Merilyn Betty [m]
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Poisons Advisory CommitteeStephen Hutchison [o]
Premier’s Department Public Sector Reform Reference GroupGarry Waters [m]
Products Safety CommitteeDavid Catt [c]Stephen Hutchision [m]
Property Services Advisory CouncilDavid O’Connor [m]Robert McMahon [s]
Rental Bond BoardDavid O’Connor [c]
Residential Tenancies Consultative CommitteePeter Berry [c]Adam Heydon [s]
Retirement Villages Consultative CommitteeDavid O’Connor [c]Adam Heydon [s]
Review of NSW Residential Tenancies Law SteeringCommitteeSusan Dixon [c]Kathrina Lo [m]
Senior Officers Reference Group on Crime PreventionSusan Dixon [m]
Standing Committee of Officials of Consumer Affairs(SCOCA)David O’Connor [m]
Steering Committee for Sharehousing ProjectKathrina Lo [m]
Swimming Pool Contract Standards AustraliaBarry Miller [m]
Trade Measurement Advisory CommitteeVictor Lawrence [m]
Travel Compensation FundBrian Given [t]
Uniform Consumer Credit Code ManagementCommitteeRod Stowe [c]
Whitegoods Code Administration CommitteeKathrina Lo [c]
14 INTERNAL AUDIT
Internal audit services were provided by a mixture of wholly internal, and contracted services. Contractedresources were specifically used to cover specialist IT auditareas.
Approximately 50% of the annual audit plan was achievedduring the year. Major variations to the annual plan arosefrom:• the management and investigation of 3 protected
disclosures• investigation of matters referred by the Independent
Commission Against Corruption• requests from management for audits/reviews• investigation of 1 alleged fraud by employee (possible loss
$6,600)
The level of client satisfaction with Internal Audit serviceswithin the Department was surveyed at 82% (‘satisfied’ or‘very satisfied’ over a range of attributes). The AuditCommittee met regularly to oversight Internal Audit servicesand to assess the internal control environment within theDepartment.
Education and awareness of staff on the DFT Code ofConduct, Protected Disclosures material and fraudprevention was undertaken through staff induction coursesand Internal Audit Branch produced newsletters.A review ofthe Code of Conduct will be completed in 1998~1999.
Actual Audit Tasks 1997~1998• Renting Services Revenue/Refunds• Statutory Interest Account (Property)• NGO Grants/Funding• Investments• Building Insurance• Mediation Services• Strata Schemes Office• Compensation Funds• Renting Services IT Systems• Payroll/Leave• Business Registration• Home Building Licensing
Planned Audit Tasks 1998~1999• Building Insurance• Investments• Debt Administration• Payroll/Leave• Business Name Registration
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• Accounts Payable• Property Services Licensing• Purchasing/Tendering• Trade Measurement• Fair Trading Investigations• Web/Internet Security• Y2K/Millenium Bug Review• Co-operatives Monitoring• FBT Administration• Fleet Management• Fair Trading Centre Operations• Associations• Fixed Assets• Grants/Funding Administration• Real Estate Inspections• Business Licence Information Service• Compliance Intelligence Services• Breach/Prosecution/Fines EnforcementNB. 1998/99 audit plan may be subject to change
15 PERFORMANCE OF CEO
Performance of Chief ExecutiveMr David O’ConnorDirector-General SES Level 6
The Minister for Fair Trading has expressed his satisfactionwith Mr O’Connor’s management of the Department anddedication to the service throughout 1997~1998.
Mr O’Connor has successfully fulfilled the key result areas of his performance agreement and lead theimplementation of a number of significant initiatives.
The Hon J W Shaw, QC MLCMinister for Fair Trading.
16 STATUTORY ANNUAL REPORT –
COOPERATION ACT 1923, SECTION 123
This report covers the period from 1 July 1997 to 30June 1998 and is presented in accordance with Section123 of the Cooperation Act 1923.
Cooperative Housing Societies and Starr-BowkettBuilding Societies are the only types of societiesregistered under the 1923 Cooperation Act. The NewSouth Wales Financial Institutions Commission is theregulatory authority for Cooperative Housing Societies,whereas the Registrar of Cooperative Societies is theregulatory authority for Starr-Bowkett BuildingSocieties.
Starr-Bowkett Building Societies
As at 30 June 1998 there were 29 Starr-Bowkett societieson the Register, four societies having been wound upand removed from the Register during the year.
Details of Co-operative Activity
Type of New Societies Societies on theSociety registered Register at 30 June
during the yearended 30 June
1997 1998 1997 1998Starr-Bowkett 0 0 33 29Building Societies
DFT Annual Report 1997~1998
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Appendices
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17 CONSUMERS’ REQUESTS FOR REVIEW OF COMMISSIONS CHARGED BY REAL ESTATE AGENTS
Review of Commission **1994~1995 *1995~1996 1996~1997 1997~1998Applications brought forward 22 34 36 49Applications received 105 147 136 127
Total 127 181 172 176
Applications finalised 93 144 123 138Applications carried forward 34 37 49 38
Total 127 181 172 176
* For the 15 months ended 30 June** For the 12 months ended 31 March
18 ETHNIC AFFAIRS PRIORITIES STATEMENT 1997-1998 – REPORT
The Corporate Plan of the Department of Fair Trading is based on the Key Result Areas of:• Informed, Educated Consumers and Traders• Leadership in Fair Trading Policy based on Social Justice and Competition Principles• Effective Regulation• Effective Marketplace Performance and Dispute Resolution• Quality-driven, Customer-focused and Ethical Department of Fair TradingThe Government’s Ethnic Affairs Action Plan 2000 is based on outcomes around the following three Key Result Areasand related issues:
KRA 1:Social Justice
1.1 Accessible and Quality Programs& Services
1.2 Responsive & Equitable Policy1.3 Participation on Decision
Making Bodies1.4 Cultural diversity in DFT
services1.5 Culturally diverse DFT
workforce1.6 Access to interpreters and
translators1.7 Accessible Local Government1.8 Planning for Cultural Diversity1.9 Improved settlement services
KRA 2:Community Harmony
2.1 Community development2.2 Religious tolerance2.3 Harmonious communities2.4 Valuing Diversity2.5 Anti-Harassment & Anti-
Discrimination2.6 Harmonious workplaces2.7 Aboriginal Reconciliation
KRA 3: Economic & CulturalOpportunities
3.1 Trade and business activities3.2 Improved employment outcomes3.3 Contributions by Ethnic
Communities3.4 Multicultural Arts3.5 Tourism, Culture & Sport3.6 Sydney 2000 Olympics
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DFT KRA 1, 5
KRA 1: Social Justice
EAPS KRA1.11.51.62.4
StrategyReview language services andmake recommendations forappropriate use of interpreterservices: telephone and sessionalinterpreters, language aides,bilingual positions; ensureadequate budget provision andproduce related resources.
Report• A Working Group has been formed.• Information is being gathered on current usage of
language services.• Information relating to Interpreter Services is
displayed at all Fair Trading Centres.• There are 53 accredited staff members receiving the
Community Language Allowance for 19 languages.• Telephone messages on hold include interpreter
information.• The review includes liaison with community groups.
1, 2, 5
5
2,5
5
1.1
1.1
1.2
1.2
Enhance and ensure consistencyin data collectionsystems/procedures to allowmore accurate identification ofexisting and potentialclients/traders to identify gapsand improve planning andprogram/service delivery and toallow effective comparisons ofinternal and external data.
Assess needs of various culturalgroups on key issues.
Include EAPS and culturaldiversity strategies in DFTCorporate, Division and Business planning processeswhere appropriate.
Include accountability forcultural diversity issues inPosition Descriptions & SESperformance agreements.
• A needs assessment for this project is underway.
• Meetings are held with Local Community groups toidentify specific needs and develop appropriate localprograms.
• Customer satisfaction surveys conducted.• Liaison commenced in western Sydney area.• NESB interagency meetings attended.• Attendance at Regional EAPS Co-ordinators
meetings.• Links are being established with peak regional groups
in South & Western Regions.
• Division and Branch Plans include EAPS strategieswhere appropriate.
• Specific strategies included in Regional Business Plansand Community Liaison plans.
• Planning for REVS marketing strategy 97~98 and98~99 includes NESB communications.
• New & revised position descriptions includeappropriate accountability.
• SES position descriptions contain cultural diversityaccountabilities.
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DFT KRA
1, 2
1, 2
5
5
1
5
1
KRA 1: Social Justice
EAPS KRA
1.2
1.3
1.4
1.42.6
1.4
1.5
1.9
Strategy
Consult with diversecommunities whenreviewing/developing policy.
Include representatives fromdiverse cultural backgrounds onCommittees, Councils, Boards.
Provide information andresources on cultural diversityissues for Senior Managementand staff.
Determine specific trainingrequirements and providelearning and development oncultural diversity issues.
Further develop awarenessprograms and informationsessions for consumers andtraders from diverse culturalbackgrounds.Identify & utilise appropriatecommunication channels e.g.community networks.
Measure staff diversity andimprove where appropriate.
Provide resources andinformation for new arrivals inDepartment of Immigration &Multicultural Affairs On-arrivalInformation Kit.
Report
• Multicultural Consultative Group meeting held May 98.
• Regional database being compiled.
• Premier’s Department registers consulted.• Community groups approached.
• Position Vacant Enquiry Kits include updated CulturalDiversity Fact Sheet & EAPS information.
• Access & Equity segment on Induction Coursesincludes Cultural Diversity component.
• Cultural Diversity issues included in customer servicelearning & development.
• Needs assessment for other areas’ learning &development is underway.
• Joint NESB Information Sessions conducted withother appropriate agencies. (Hunter Region)
• Fair Trading presentations to English Languagestudents. (Hunter Region)
• Increased contact in regional cross culturalcommunity programs & planning activities. (SouthRegion)
• Regional networks through associations with peakgroups. (South and Western Regions)
• Input sought from NESB teaching organisations withregards to appropriateness of current complaint forms.(Hunter Region)
• EEO statistics being formulated to report on diversity.
• Updated tenancy and general DFT informationprovided.
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DFT KRA
1
KRA 2: Community Harmony
EAPS KRA
2.1
Strategy
Encourage fair trading in ethniccommunities, including throughfunded services and Co-opsdevelopment.
Report
• Participation in NSW Multicultural Business Strategy– use of Co-operatives in small business developmentin ethnic communities.
• DFT funding guidelines and workplans of fundedgroups indicate targeting of groups from diversecultural backgrounds.
DFT KRA
1, 4
5
KRA 3: Economic & Cultural Opportunities
EAPS KRA
3.1
3.2
Strategy
Ensure people of diverse culturalbackgrounds who are proposingto commence new businesses orexpand businesses, are aware ofregistration & licensingrequirements.
Link with EEO Management toimprove employment outcomes.
Report
• Review of forms and publications commenced.
• Divisional EAPS has clear links to EEO Plan toimprove employment outcomes.
19 ETHNIC AFFAIRS PRIORITIES STATEMENT JULY 1998 – JUNE 2001
The Department of Fair Trading is committed to ensuring fairness and value in the marketplace by providing:• information and assistance to consumers and traders;• leadership in fair trading based on social justice and competition principles;• regulation and compliance; and• monitoring effective marketplace performance and dispute resolution.
It is also committed to providing its services to consumers from diverse backgrounds through paying special attention tovulnerable and remote groups. Initiatives to assist this work are outlined in the Department’s Access and Equity Strategy.This aims to ensure that mainstream programs and policies reflect the diverse needs of all Departmental customers.Accessand equity are part of the core business of this Department and, as such, are linked to the Corporate Plan Key ResultAreas.
The Department is responsible for reporting to the NSW Government on outcomes for various equity target groups.Thisincludes a statutory obligation to prepare and report on the Ethnic Affairs Priorities Statement (EAPS). To assist co-ordination, EAPS has been incorporated into the Access and Equity Strategy. Some initiatives are specifically targeted atpeople of non-English speaking background; other strategies improve outcomes for a range of groups.
Department of Fair Trading – Corporate Plan Key Result Areas• Policy and regulatory framework• Information and education• Compliance monitoring and enforcement• Licensing, registration and certification• Quality, efficiency and customer focus of operations
The following strategies are the EAPS components from the Department’s Access and Equity Strategy.They relate to theEAPS Key Result Areas of Social Justice, Community Harmony, and Economic & Cultural Opportunities.
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DFT Key Result Area 1: Policy and regulatory framework
Strategies
Incorporate access and equity considerations in reviewsconducted under National Competition Policy andother policy work (eg. issues papers and consultation)
Undertake research to identify fair trading issues in thetenancy market
Participate in the development and implementation ofthe NSW Multicultural Business Strategy
Increase the number of people from equity targetgroups appointed to DFT advisory bodies.
Outcomes
Perspective of disadvantaged groupsincorporated in new legislation, researchand policy
Information to assist the reduction ofproblems and enhance dispute resolutionmechanisms
Report to the Premier on business andemployment opportunities, building onproductive diversity
DFT targets are met
Target Group
All
All
N
N,W and A
DFT Key Result Area 2: Information and education
Strategies
1 Review DFT forms and key marketplace documentsto assess level of complexity
2 Improve documents found to not be in plain Englishor poorly laid out
1 Review DFT publications which are translated orATSI targeted
2 Produce translated and/or culturally appropriateversions of key publications where justified
Incorporate strategies appropriate for equity targetgroups in general DFT education campaigns
Conduct specific education campaigns targeting NESBpeople;ATSI people; young people and older people
Spend 7.5% of DFT advertising budget on utilising theethnic print mediaSpend 3% of DFT electronic media expenditure onethnic electronic media
Provide information on DFT services on the Internet inlanguages other than English
Outcomes
1 Difficult forms and documentsidentified
2 All DFT forms and key marketplacedocuments in plain English
1 Gaps identified in publication list2 ATSI and NESB communities have
access to appropriate DFT publications
Wide range of communities are served byDFT education campaigns
DFT education campaigns address keyissues for particular target groups
Increased awareness of DFT and itsservices in ethnic communities; complywith Premier’s Memoranda
Broad availability of DFT information toNESB people using the Internet;
Target Group
All and C
N and A
All
N,A,Y and O
N
N
Key: (A) Aboriginal people (W) Women (L) People with low literacy (R) People in remote areas (O) Older people (G) Gay and lesbian people (D) Peoplewith a disability (Y) Younger people (C) All consumers in NSW (N) People of non-English speaking background.
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DFT Key Result Area 3: Compliance monitoring and enforcement (includes dispute resolution)
Strategies
Conduct training of DFT compliance and Tribunal staffin effective customer service to people from diversebackgrounds
Review access by equity target groups to the Tribunals
Outcomes
Increased skills to identify and meetneeds of all DFT customers
Assessment of gaps by particular groupsto services provided by the Tribunals
Target Group
All
All
DFT Key Result Area 4: Licensing, registration and certification
Conduct training for staff involved in regulation onimplications for equity target groups
Increased skills to identify andincorporate issues affecting target groups
All
DFT Key Result Area 5: Quality, efficiency and customer focus of operations
Conduct training for DFT staff in effective customerservice to people from diverse backgrounds
Produce an access and equity resource manual
Establish systems for data collection and analysis ofcharacteristics of DFT customers
Conduct regular customer satisfaction surveys
Review language services, including level of provision,and the Community Language Assistance Scheme (CLAS)
Conduct a series of internal workshops on workloadmanagement and how to focus resources to mostdisadvantaged customers
Align the staff diversity profile to reflect DFT customerservice needs, through the Equal Employment OpportunityStrategy and the Aboriginal Employment Strategy
Undertake regular liaison with peak, regional and localgroups regarding DFT services, policy and new initiatives
Increased skills to identify and meetneeds of all DFT customers
DFT staff more able to incorporate accessand equity considerations into all policy,planning and service delivery.
Profile of current DFT customersprovides benchmark and betterunderstanding of customer needs
Future data measures progress onimproving access by particular targetgroups and understanding of changes incustomer needs
Feedback on DFT services for serviceevaluation and planning
Access by customers to interpreters andlanguage aides for all core DFT services
DFT better able to devote appropriateresources to disadvantaged target groups
Improved capacity to provide services tocustomers from diverse backgrounds
Increased awareness among targetcommunities of DFTDFT more aware of needs of diversetarget groups
All
All
All
All
N
All
W, D,A, and N
All
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20 ACCOUNTS PAYABLE PERFORMANCE
1 Schedule of accounts payable as at 30 June 1998:Current $1,142,057.39Less Than 30 Days 1,206.66Between 30 & 60 Days 2,427.60
Total accounts payable $1,145,691.65
2 Accounts paid during 1997~1998:Percentage of accounts paid on time(34,961 vouchers processed on time out of 37,159) 94.08%Total dollar amount of accounts paid on time $112,888,770.69Total dollar amount of accounts paid $117,442,874.64
21 DISABILITY PLAN
The Department is committed to providing its services to consumers from diverse backgrounds through paying specialattention to vulnerable and remote groups. Initiatives to assist this work are outlined in the Department’s Access and EquityStrategy.The Strategy aims to ensure that mainstream programs and policies reflect the diverse needs of all Departmentalcustomers.
The Department’s 1998~2001 Access and Equity Strategy contains strategies for people with disabilities, both staff andcustomers. Some initiatives are specifically targeted at people with disabilities; other strategies improve outcomes for arange of groups.
The disability strategies for 1998~1999 include:• A review of forms and key documents to assess their level of complexity and to improve those found not to be in plain
English or poorly laid out.• A progressive review of physical access to buildings and the availability and use of TTY (Telephone Typewriter) phones
so that premises and communication systems are suitable for customers and staff with a disability.• The Department’s review of language services will include deaf sign language.• A network of staff has been established as a consultative mechanism for people with a disability.• We aim to increase the recruitment and retention of staff with disabilities, through the Equal Employment Opportunity
Strategy.• Regular liaison with relevant groups regarding DFT services, policy and new initiatives in order to increase awareness
of DFT services among people with disabilities and to make the Department more aware of the needs of people withdisabilities.
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22 PROPERTY SERVICES COMPENSATION FUND
During 1997~1998 a total of 390 claims were lodged against the Compensation Fund, set up to compensate people whosuffer losses as a result of the failure of licensees to account.Claim Payouts amounting to $814,000 involving 26 defaultinglicensees were made.The average payout was $2,310.
$’000Balance as at 1 August 1997 22,174Receipts 2,831Expenditure (4,384)
Balance as at 30 June 1998 20,621
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Index
Aboriginal people 16, 33Access & Equity 33Accounts payable 85Aged care 18Associations 35Bank closures 13Building apprentices training 18Building disputes 31Business names 20, 36Caravan parks 22CEO performance 78Cigarette lighters 17Community grants 17, 38Computer industry inquiry 19Consultants 68Conveyancers 24Cooperatives 15, 79Core capabilities 3Core values 3Credit counselling 17Customer feedback 71Director-General’s Report 4Disability plan 85EEO 35Electrical safety 14, 30Electronic service delivery 37Employment agencies 27Energy Co-operative 21Energy industry 19Ethnic Affairs 79European Mutual Recognition 25Fair Trading Administration Corporation Vol 2Fair Trading centres 2, 12Fair Trading Tribunal 31Fernbank Retirement Village 29Financial Counselling Trust Fund 18Financial management 37Fitness industry 26Freedom of Information 69Funeral Funds 74Grants 70Health care co-operative 15Information technology 36Insurance 67Internal Audit 77Internet 11, 37Key result areas 3Kit homes 28Knife laws 16
Legislation 22, 66
Licensed Trade Measurement Certifiers 30
Matchmakers 30
Mediation 31, 32
Ministerial Advisory Councils 20
Motor Dealers Compensation Fund 67
Namoi Cotton 23
National Competition Policy 22
National Consumers Day 15
NSW Land and Housing Corporation and Rental Bond Board Joint Venture Vol 2
NSW Rental Property Trust Vol 2
Nursery furniture 17
Olympics 10
Organisation chart 8
Outworkers 20
Overseas travel 68
Paralympics 10
Pawnbrokers and Second-hand dealers 22, 29
Penalty Notices 25
Planning 38
Pool repairs 28
Portfolio authorities 67
Program allocations 8
Property Services Compensation Fund 85
Property Services Council Vol 2
Prosecution results 66
Publications 15, 74
Real estate agents 13, 29, 79
Regional access 12
Regulatory Impact Statements 23
Rental Bond Board Vol 2
Rental bonds 14
Renting services 36
Research 16
REVS 14, 24, 27
Risk management 38
Statutory bodies 75
Strata schemes 13, 26
Strategic intent 3
Television receivers 25
Tenancy 13, 18
Tenants Advice and Advocacy Program 17
Trans-Tasman Mutual Recognition 24
Valuers 23, 35
Website 2, 10
Whitegoods Code 26
Year 2000 11, 37
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